The dollar falls as investors await the U.S. elections and the Federal Reserve meeting.

The dollar index retreated during Monday's trading, as investors abandoned the U.S. currency in anticipation of the start of voting in the U.S. presidential elections later in the day. The high degree of uncertainty has led to increased selling of the greenback.

The Dollar Now

In terms of trading, the dollar index DXY – which measures the performance of the U.S. currency against a basket of six major currencies – fell by about 0.54% to record 103.68 points.

What Affected Dollar Movements?

Investors have turned cautious as the week begins with very significant events, as the United States prepares for the first day of voting in the presidential elections this afternoon. Meanwhile, the Federal Open Market Committee is preparing to make a rate decision during its meeting on Wednesday and Thursday of this week, with expectations that the Federal Reserve will cut interest rates by 25 basis points.

This comes after U.S. non-farm payroll data released on Friday showed that the U.S. economy added significantly fewer jobs than expected, affected by weather issues and strikes caused by Hurricane Milton.

On the other hand, a key poll showed that Democratic candidate Kamala Harris is leading her Republican counterpart Donald Trump in Iowa, a state that usually leans Republican, increasing uncertainty about the election outcome, which strengthened selling pressure on the U.S. dollar.